3 months ago 1 min read

Binance CEO CZ Highlights Rising Market Cap of USDT

binance-changpeng zao-nydfs-usdt-paxos-busd-svb-stablecoin

The founder of Binance, the largest cryptocurrency exchange in the world, Changpeng Zhao, used Twitter earlier today to highlight the market conditions for stablecoins. The Binance CEO began by highlighting the absurdity in Binance USD's (BUSD) winding down despite it being the “most fiat-backed stablecoin.”

Zhao's tweet said that Paxos Trust Company, a stablecoin company governed by the New York Department of Financial Services (NYDFS) and audited by major accounting firms, was the issuer of BUSD. Nevertheless, when Paxos was instructed to stop creating the stablecoin last month, these reasons proved to be useless.

Changpeng Zhao emphasized that Tether USD (USDT), the largest stablecoin in the world, had been able to increase its market value by more than 9% despite the crackdown on Paxos and BUSD. The market capitalization of USDT has increased to a staggering $77 billion since the minting of BUSD was stopped on February 21.

BUSD's market value, meanwhile, has experienced a severe decline, falling by more than 37% during the same time frame. The stablecoin had a $8.1 billion market valuation at the time of writing. Another stablecoin is failing as a result of the recent turbulence in the banking sector.

The founder of Binance called attention to USD Coin's (USDC) plight, which was made worse by Silicon Valley Bank's (SVB) collapse last week. For a brief while, the stablecoin was not tied to the US dollar and traded as low as 90 cents. According to Changpeng Zhao, bank closures are also lowering USDC's market capitalization. Since March 10 when SVB fell, the market cap of the stablecoin has decreased by more than 18%.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.